City council reacts to new deficit figures

MOBILE, Ala. (WALA) - A looming budget shortfall is now looking better in the city of Mobile.

Thursday, the city’s finance director said that the $29 million number we've been hearing is more like $12-$14 million. She said the council has been pushing the largest number.

In March, Mayor Sam Jones said $29 million is the number to work with.

"It could be $28.5; it could be $31 but $29 is a number we feel comfortable with," said Jones.

Thursday, Barbara Malkove, the city’s finance director, said the number is closer to half of that.

Councilwoman Gina Gregory said this is the first she’s heard of the lower figure.

"At today’s meeting is the first time that I’ve heard from anyone in the administration that the number to closer to $14 million rather than $29 million,” said Gregory.

Malkove said the $29 million figure was pushed on the public by the city council, not the administration.

"It's the city council and others that have picked up on $29 million because it was the worst one. It was not cutting any expenses and not improving revenues," said Malkove.

FOX10 showed council members the interview with Malkove and got their reaction.

"We were told that the number was $29 million," said Councilman John Williams.

However, some council members like William Carroll said they knew all along that the number wasn’t that large.

"We never ever thought the number was $29 million, and we never really believed that our deficit was $29 million," said Carroll.

"Its been the council who has questioned those numbers all along," said Gregory.

There is a big difference between$ 29 million and $14 million.

So how did the estimate get so far off base? 

Councilman Williams said it was strategic.

"That was a political move. The mayor is a masterful politician no question about it; he calculated that number," said Williams.

Regardless of how it happened, council members are happier with the lower figure.

"I’m glad to see the administration moving forward and finding what may be the true bottom so that we can make some good decisions and move forward," said Carroll.

"Finding out what the deficit is a good starting point," said Gregory.

They said there is still work to be done to get a balanced budget.

"There is a breakdown somewhere. And it's time that the CEO, the mayor of this city, gets to work, gets to the truth and reports that truth to the people of Mobile," said Carroll.

The meeting Thursday was a council appointed citizens advisory committee.

They also discussed priorities. Their list included pension matters, healthcare and whether the city is top heavy when it comes to employees.